As the world grapples with the vast scale and
human impact of COVID-19, Starbucks ceo Kevin Johnson says
Starbucks has the financial strength and resilience to manage
through this extraordinary time, guided by the company’s Mission
and Values
- With customer and partner (employee) safety paramount,
Starbucks activates its “to go” model for communities across the US
& Canada, leveraging the Starbucks mobile app, Drive Thru and
new Starbucks® Delivers.
- Starbucks offers paid sick leave and catastrophe pay; also
announces a new mental-health benefit for U.S. partners and their
families.
- Company celebrates continued recovery in China, with 90 percent
of stores now open and the announcement of a new sustainable
roasting plant coming in 2022.
- Company reflects on fiscal 2019 performance and strong
financial position; announces Board of Directors authorization to
repurchase up to 40 million shares of the company’s common
stock.
Starbucks Corporation will hold its 28th Annual Meeting of
Shareholders today, virtually, with opening remarks from Kevin
Johnson, president and chief executive officer.
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the full release here:
https://www.businesswire.com/news/home/20200318005207/en/
On Wednesday, March 18, 2020 Starbucks
will hold its 28th Annual Meeting of Shareholders virtually, with
Kevin Johnson, president and chief executive officer, sharing an
update on the company’s commitment to the care of its partners and
customers and long-term business growth strategy. (Photo: Business
Wire)
As the company continues to monitor and navigate through the
dynamic situation of COVID-19, Johnson will share an update on the
company’s commitment to its long-term business growth strategy that
is grounded in the care of its partners (employees) and
customers.
“As we are navigating this dynamic global environment together,
we will continue to prioritize the health and well-being of our
partners and customers while we support local health officials and
governments in containing the virus,” said Johnson. “We are a
resilient and enduring company by staying true to our Mission and
Values with a purpose that goes beyond the pursuit of profit.”
On the cusp of the company’s 50th year anniversary, Johnson will
also reflect on the company’s strong performance in fiscal 2019 and
preview a vision for Starbucks rooted in caring for people and
growing the business in a sustainable and responsible way.
Starbucks mobilizes digital, drive thru and delivery
capabilities to serve customers safely
Starbucks stores have always been known by customers as their
“third place,” and as the world continues to navigate COVID-19, the
company has continued to respond quickly by modifying its “third
place” experience—moving to a “to go” model across the U.S. and
Canada for at least two weeks to encourage social distancing in its
cafés. As the situation with COVID-19 is extremely dynamic
customers can now walk up and order at the counter, use the “order
ahead” feature within the Starbucks mobile app, visit a Drive Thru
or use Starbucks® Delivers to get their daily Starbucks. For the
latest information on store hours and closures, customers can
access information via the Store Locator or on the Starbucks
app.
The company also announced that Starbucks® Delivers, in
partnership with Uber Eats, will reach national U.S. availability
by the end of April, making it available in 48 states where both
companies operate. The expansion of Starbucks Delivers is part of
the company’s continuous effort to leverage customers’ digital
preferences and provide another convenient way to enjoy Starbucks
wherever they are.
The latest information on Starbucks response to COVID-19 will be
available on the company’s Starbucks Stories site:
https://stories.starbucks.com/stories/2020/navigating-through-covid-19/.
Investing in Partners and the Future of Starbucks
Starbucks shared with partners that they will never have to
choose between working or taking care of themselves and that the
company has put programs and support in place including catastrophe
pay and benefits that support their physical and mental health. As
Johnson will emphasize today, Starbucks success is built on the
achievements of the 400,000 partners who wear the green apron
around the world. Bolstering this commitment to partners, earlier
this week Starbucks announced a new mental health benefit that
provides partners and their families with 20 free counseling
sessions every year. This is made possible by a new partnership
with Lyra Health, a mental health provider that offers an online
solution Starbucks partners can use to securely and confidentially
seek evidence-based mental health treatment for their needs,
identify available health providers and book appointments on the
spot.
Starbucks also announced mental health training sessions
inspired by Mental Health First Aid for U.S. and Canada store
managers and field leadership to be available this summer. The
sessions have been developed in conjunction with the National
Council for Behavioral Health to help equip leaders to support
partners who may be experiencing mental health issues, substance
use problems, or crisis moments and provide them with resources for
further support.
Celebrating Continued Recovery and Resilience in
China
Further deepening Starbucks long-held commitment to elevate
specialty coffee in China, last week Starbucks announced it will
open a state-of-the-art Coffee Innovation Park (CIP) in China in
2022. The facility will incorporate a roasting plant, warehouse and
distribution center, creating highly-skilled jobs and new career
opportunities that will help drive smart and sustainable coffee
manufacturing. The $130 million investment in the CIP is Starbucks
largest coffee manufacturing investment outside of the United
States and the first in Asia. It will serve as a key component of
the company’s global roasting network, and the bold infrastructure
investment further deepens Starbucks multi-decade commitment to
strengthen the specialty coffee industry in China, where it aims to
have 6,000 stores by 2022.
Advancing Shareholder Returns Commitment
Starbucks announced today that its Board of Directors has
authorized the repurchase of up to 40 million shares of the
company’s common stock. This authorization is in addition to the
approximately 16 million shares that remained available as of
December 29, 2019 for repurchase under an existing authorization.
In fiscal 2019, the company returned $12 billion to shareholders
through a combination of dividends and repurchases of approximately
140 million shares.
"Starbucks has the financial strength and resilience to manage
through this extraordinary time, guided by our Mission and Values,”
said Johnson. “The increase in our share repurchase program
reflects our confidence and optimism about the long-term growth
opportunity for our business.”
Starbucks Annual Meeting of Shareholders will begin at 10 a.m.
PT today via webcast at http://investor.starbucks.com.A replay of the
webcast will be available on the company’s website until end of day
September 18, 2020.
Please visit https://stories.starbucks.com to find images and
live updates of the Annual Meeting of Shareholders.
Forward Looking Statements
Certain statements contained herein are “forward-looking”
statements within the meaning of the applicable securities laws and
regulations. Generally, these statements can be identified by the
use of words such as “anticipate,” “continue,” “could,” “estimate,”
“expect,” “forecast,” “intend,” “may,” “outlook,” “plan,”
“potential,” “predict,” “project,” “remain,” “should,” “will,”
“would,” and similar expressions intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. These statements
include statements relating to: the strength, resilience and
outlook of our operations, business and brand; increasing
shareholder returns; our commitment to strengthen the specialty
coffee industry and the long-term opportunity in China; our ability
to grow our business in a sustainable and responsible way and our
ability to leverage and grow digital experiences. These
forward-looking statements are based on currently available
operating, financial and competitive information and are subject to
a number of significant risks and uncertainties. Actual future
results and trends may differ materially depending on a variety of
factors, including, but not limited to: fluctuations in U.S. and
international economies and currencies; our ability to preserve,
grow and leverage our brands; the ability of our business partners
and third-party providers to fulfill their responsibilities and
commitments; potential negative effects of incidents involving food
or beverage-borne illnesses, tampering, adulteration, contamination
or mislabeling; potential negative effects of material breaches of
our information technology systems to the extent we experience a
material breach; material failures of our information technology
systems; costs associated with, and the successful execution of,
the company’s initiatives and plans, including the integration of
the East China business and the successful expansion of our Global
Coffee Alliance with Nestlé; our ability to obtain financing on
acceptable terms; the acceptance of the company’s products by our
customers and evolving consumer preferences and tastes; changes in
the availability and cost of labor; the impact of competition;
inherent risks of operating a global business; the prices and
availability of coffee, dairy and other raw materials; the effect
of legal proceedings; the disruption to our business related to
COVID-19; the effects of changes in tax laws and related guidance
and regulations that may be implemented and other risks detailed in
the company filings with the Securities and Exchange Commission,
including the “Risk Factors” section of Starbucks Annual Report on
Form 10-K for the fiscal year ended September 29, 2019 and of
Starbucks Quarterly Report on Form 10-Q for the fiscal quarter
ended December 29, 2019. The company assumes no obligation to
update any of these forward-looking statements.
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Starbucks Coffee Company press@starbucks.com
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